Main Job
Over half of the students in our sample do not work at a job. Almost 30 percent of students work at a job for up to 20 hours per week. Almost a fifth of students work 21 or more hours per week.
Financial and Economic Well-being of Students
Howard University
Gerald E. Daniels Jr., Venoo Kakar, Kelsey Brown, Jeffrey Galloway
December 28, 2023
PDF Version
Acknowledgements
Support for this research was provided by the Robert Wood Johnson Foundation’s Policies for Action program to Howard University and San Francisco State University. The authors would like to thank Sanaa Artis, Miriam Hagan, Kody Jones, Oluwaseun Kolade, Arsene Oka, Ifeoluwa Olatona, Armari Tucker, Llarance Turner, and Naomi Wright for their invaluable research assistance and Joanne Hsu, Omari Swinton, and all supporting HU students, faculty, and staff for their support and feedback.
Executive Summary
About
The Financial and Economic Well-being of Students (FEWS) survey is a ten-minute, online, cross-sectional survey of college-going students. The survey collects information on demographics, education, income, employment, spending habits, parental history, student loans, banking and credit, and financial literacy for a student. No other study collects similar information.
From March 1 to May 10, 2023, the FEWS survey was administered to students at Howard University (HU). Participation in the survey was voluntary. To be eligible to participate in the FEWS study at HU, students must have been a student at HU and at least 18 years of age. A total of 724 students responded to the survey. After removing nonrespondents and respondents for not being 18 years of age or older, the final sample used in the report included 702 students. At the end of the survey, students had the option to enter a drawing for one of over 140 $25 gift cards.
As of Fall 2022, HU had a total enrollment of 12,886, with undergraduate enrollment at 9,809. Seventy-two percent of undergraduates were female, and 28 percent were male. Sixty-five percent of undergraduates were Black or African American, 6 percent Hispanic/Latino, 5 percent two or more races, and 3 percent Asian. Ninety-seven percent of undergraduates were 24 years of age and under, and 3 percent were 25 and over, in Fall 2021.HU offers over 70 undergraduate programs across various fields, including arts, sciences, business, engineering, and health sciences. In addition, HU provides more than 50 graduate programs, including master’s, doctoral, and professional degrees. HU strongly emphasizes professional degrees, particularly in law, medicine, dentistry, and business.
Demographics
Three quarters of our sample describe themselves as a woman.
Ninety percent of our sample is between the ages of 18 and 24, while the remaining ten percent are above 25.
The individuals in our sample consist of eighty-five percent Black (non-Hispanic), six percent Hispanic, four percent Multiracial (non-Hispanic), two percent White (non-Hispanic), and two percent Asian (non-Hispanic).
Twenty-two percent of students do not pay anything for their living arrangements each month. Forty-four percent of HU students pay greater than $0 but less than $1,500, and twenty-two percent pay $1,500 or more.
Education
- Educational Program
Forty-three percent of HU students in our sample are enrolled in a social sciences program. Eighty-one percent of students enrolled in a social science program are women, while seventeen percent are men.
Twenty-two percent of HU students are enrolled in a business program. Sixty-five percent of students enrolled in a business program are women, while thirty-five percent are men.
Twenty-four percent of HU students are enrolled in a sciences program. Seventy-five percent of students enrolled in a science program are women, while twenty-five percent are men.
- Most of our sample is first- or second-year students. Twenty percent are juniors. There is relatively low representation of seniors and graduate students.
Employment, Income, and Spending
Over half of the students in our sample do not work at a job. Almost 30 percent of students work at a job for up to 20 hours per week. Nearly a fifth of students work 21 or more hours per week.
Income Source
Sixty-three percent of students have received wages or salaries in the past 12 months, while 37 percent have not.
Most students have not received gig income in the past 12 months (86 percent).
Two-thirds of our sample have an income of less than $15,000.
If the students in our sample had a $400 emergency expense, 70 percent said they would pay with a credit card or borrowing. Thirty-eight percent of students say they would not be able to pay. Thirty-seven percent say they could pay for a $400 emergency expense with money they currently have.
Nearly half of the students in our sample incurred debt by spending more than their income in the past year. Twenty-two percent of the students in our sample were able to save, by spending less than their income in the past year. Eighteen percent spent about equal to their income. Eleven percent of the students in our sample do not know what their spending relative to their income is.
Parents’ Background
Twenty-nine percent of the students in our sample have parents with an approximate annual income of $0 to $50,000. Almost a quarter of the students in our sample have parents with an annual income of at least $50,000 but less than $100,000. Twenty-seven percent of the students in our sample have parents with an annual income of $100,000 or more.
Parents’ education
Fifty-seven percent of the students in our sample have a mother with a bachelor’s degree or higher. Seventeen percent of the students in our sample have a mother with a high school degree or GED, or less.
Forty-two percent of the students in our sample have a father with a bachelor’s degree or higher. Twenty-seven percent of the students in our sample have a father with a high school degree or GED, or less.
When asked to think of their parents when they were the student’s age, 52 percent of students say they are better off financially than their parents.
Student Loans
Students were nearly evenly split between those who have received a Federal Pell Grant and those who have not.
Sixty-eight percent of students currently owe money for student loans, and over a quarter of the students in our sample have credit card debt to fund their education.
Among students who have ever owed or currently owe money for their education, before they got their most recent student loan, 40 percent of them did try to determine their anticipated monthly payments. Forty-six percent of them did not.
Eighty-one percent of students do not anticipate making payments in full, and only 19 percent expect to make payments in full.
Among students who currently owe money for their education, when asked if they’re concerned about the repayment of their student loans, 38 percent of them are very concerned.
Banking and Credit
Only 2 percent of students are “unbanked.”
Students were asked how often they use websites or apps to help with financial tasks such as budgeting, saving, or credit management (e.g., GoodBudget, Mint, Credit Karma, etc.), not including websites or apps for making payments or money transfers. Most students are never using these websites or apps (56 percent).
Forty-five percent of the students in our sample do not have a credit card, and a third of students have one. Seventy-two percent of the students in our sample have either never or very infrequently (once) carried an unpaid balance on one or more of their credit cards.
Financial Education, Well-being, and Literacy
Students were asked to self-assess their financial knowledge and were given a series of financial questions to answer. Comparing the results of the series of financial knowledge questions to the student’s self-assessment, a typical student respondent overestimated their financial knowledge.
Sixty-five percent of the students in our sample were never required to take a financial education course.
Demographics
Age
Ninety percent of our sample is between the ages of 18 and 24.
Gender
Three-quarters of our sample describe themselves as a woman, with the other quarter describing themselves as men and other (23 and 2 percent, respectively).
Diversity
Living Arrangements
Fifty-five percent of students say they currently live with roommates or other family aside from their parents. Forty-one percent of students say that they currently live with their parents. Nearly one fifth of students say they are the only adult in the household, and 2 percent say they live with their children under age 18.
Cost of Living Arrangements
Twenty-two percent of students do not pay anything for their living arrangements each month.
Education
Educational Program
by Gender
Current Status
Most of our sample is first- or second-year student. Twenty percent are juniors. There is relatively low representation of seniors and graduate students.
Current Enrollment
Nearly all of the students in our sample are currently enrolled full-time.
Highest Degree
Employment, Income, and Spending
Income Source
Sixty-three percent of students have received wages or salaries in the past 12 months, while 37 percent have not.
Gig income is defined as income for specific tasks through a website or mobile app, such as Uber, Lyft, Upwork, Task Rabbit, Care.com, etc. Most students have not received gig income in the past 12 months (86 percent).
Annual Income
Student annual income encompasses wages, tips, public assistance, scholarships, and other forms of earnings received yearly. This definition excludes income or financial support from parents or other family members and student loans. Notably, two-thirds of the students in our sample have an annual income of less than $15,000.
Emergency Expense
If the students in our sample had a $400 emergency expense, 70 percent said they would pay with a credit card or borrowing. Thirty-eight percent of them say they would not be able to pay. Thirty-seven percent say they could pay for a $400 emergency expense with money they currently have.
Spending in Relation to Income
Nearly half of the students in our sample incurred debt by spending more than their income in the past year. Twenty-two percent were able to save by spending less than what they earned, eighteen percent spent an amount roughly equal to their income, and eleven percent do not know their spending in relation to their income.
Parents’ Background
Annual Income
Twenty-nine percent of the students in our sample have parents with an approximate annual income of $0 to $50,000. Almost a quarter of the students in our sample have parents with an annual income of at least $50,000 but less than $100,000. Twenty-seven percent of the students in our sample have parents with an annual income of $100,000 or more.
Education
Fifty-seven percent of the students in our sample have a mother with a bachelor’s degree or higher. Seventeen percent of the students in our sample have a mother with a high school degree or GED, or less. Forty-two percent of the students in our sample have a father with a bachelor’s degree or higher. Twenty-seven percent of the students in our sample have a father with a high school degree or GED, or less.
Generational Financial Well-being
When asked to think of their parents when they were the student’s age, 52 percent of students say they are better off financially than their parents.
Student Loans
Pell
Federal Pell Grants are for undergraduate students with exceptional financial needs and partly depend on the student’s Expected Family Contribution.1 These grants usually do not need to be repaid. Howard students were nearly evenly split between those who have received a Federal Pell Grant and those who have not.
Options Used to Fund Education
Sixty-eight percent of students currently owe money for student loans, and over a quarter of the students in our sample have credit card debt to fund their education.
Total Amount Currently Owed for Education
Total Required Monthly Payment on All Education Loans
Among students who currently owe money for their education, over half stated that they are not required to make any monthly payments on their education loans. Twenty-three percent are actively required to make payments, while over a quarter are uncertain about the total amount of their required monthly payment.
Planned Monthly Payments
Among students who have ever owed or currently owe money for their education, before they got their most recent student loan, 40 percent of them did try to figure out how much their monthly payments would be. Forty-six percent of them did not.
Student Loan Relief Plan
President Biden’s Student Loan Relief Plan is currently blocked.2 Among students who have ever owed or currently owe money for their education, 45 percent expect to receive or have received relief due to this plan. Over half of them do not expect to receive relief (55 percent).
Payment Pause
Beginning in April 2020, most government-guaranteed student and parent loan payments were paused. For such loans, no payments have been required and no interest has been accruing or will be accruing through August 31, 2023. Three-quarters of students who have ever owed or currently owe money for their education have not made any payments since the payment pause began.
Anticipated Repayment After Payment Pause
Eighty-one percent of students do not anticipate making payments in full, and only 19 percent expect to make payments in full.
Frequency of Late Student Loan Payments
Among students who have ever owed or currently owe money for their education, when asked how many times they have been late with any student loan payments in the past year, most students said they have never been late because payments are not currently due (67 percent).
Concern About Repayment of Student Loans
Among students who currently owe money for their education, when asked if they are concerned about the repayment of their student loans, 38 percent of them are very concerned.
Banking and Credit
Checking or Savings Account
Only 2 percent of students are “unbanked” or do not have a checking or savings account.
Overdraw Checking Account
Overall, a third of the students in our sample said they overdraw their checking account occasionally.
Fintech
Students were asked how often they use websites or apps to help with financial tasks such as budgeting, saving, or credit management (e.g., GoodBudget, Mint, Credit Karma, etc.), not including websites or apps for making payments or money transfers. Most students are never using these websites or apps (56 percent).
Credit Outcomes
Over a quarter of the students in our sample have delayed applying for credit in the past 12 months for fear of being denied.
Number of Credit Cards
Forty-five percent of the students in our sample do not have any credit cards, and a third of students have one.
Frequency of Unpaid Credit Card Balances
Seventy-two percent of the students in our sample have either never or very infrequently (once) carried an unpaid balance on one or more of their credit cards. These students use credit cards only as a way to pay expenses, and avoid interest costs.
Financial Education, Well-being, Literacy
Financial Self-efficacy
Forty-one percent of students are somewhat confident in their ability to achieve a financial goal.
Self-perceived Financial Literacy
Fifty percent of the students in our sample rate their overall financial knowledge as average. The other half was evenly split between those who say they have high financial literacy and those who rate their overall financial knowledge as low.
Responses to Financial Literacy Questions
To measure students’ financial literacy, they were asked three questions on interest, inflation, and risk diversification.3 The question on interest had the highest share of correct answers (71 percent). The questions on inflation and risk diversification inflation had higher shares of incorrect answers than correct ones, with risk diversification the highest at 68 percent and inflation at 57 percent.
Objective Financial Literacy
Despite a quarter of students rating their financial literacy as “low,” 65 percent students answered one or zero financial literacy questions correctly.
Required Financial Education Course
Sixty-five percent of the students in our sample were never required to take a financial education course.
Source of Required Financial Education Course(s)
Description of the survey
The Financial and Economic Well-Being of Students survey was launched in 2022 to delve into college students’ financial and economic conditions. This college survey was designed, drawing inspiration and insights from several prominent studies, namely the Survey of Consumer Finances (SCF), the Survey of Household Economics and Decisionmaking (SHED), and the National Financial Capability Study (NFCS).
This survey is part of a broader, ongoing research initiative focusing on student loan debt, aiming to provide a deeper understanding of students’ financial challenges and potential solutions. This survey gathers data that will be pivotal in contributing to the ongoing student loan policy discussions in the U.S.
To ensure widespread participation, the survey was communicated via various channels, including distributing flyers throughout the campus, sending representatives to classes, and launching an email campaign to connect with students.
Survey Participation
Participation in the 2023 FEWS survey depended on students consenting to participating in the research, and completing an age eligibility question requiring them to be 18 years of age or older to participate.
Targeted Outreach and Incentives
The survey targeted Howard University, a historically black university, with monetary incentives to increase participation and completion among a wide array of demographic groups.
Survey Questionnaire
The 2023 survey took students 7 minutes (median time) to complete.
A priority in designing the survey was to inform how student loan policies in the United States can target different groups of the population. The full survey questionnaire for this report is available upon request.
Survey Mode
While the survey was administered by flyering all over campus; going to face-to-face classes; and email, FEWS was administered to students online. Online surveys reduce costs and conveniently and quickly reach a greater number of students. They can be anonymous, supporting candid answers. Finally, they reduce respondent burden more by displaying relevant questions dependent on previous answers.
Online survey participation could be biased toward students with smartphones, computers, and the internet.
Sampling
The FEWS survey sample was designed to be representative of students aged 18 and older and provide additional insights for students with education loan balances.
Item Non-response
Item non-response in the 2023 FEWS survey was handled by removing any respondent who didn’t respond to any question.
https://studentaid.gov/understand-aid/types/grants/pell#maintain↩︎
An appendix containing the complete FEWS questionnaire is available upon request.↩︎